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Construction Loan to FHA Loan

Hi all! I currently have equity in a property (that I am still paying off) and I want to start a construction project to build a home and then finance everything into one FHA loan.

Bank construction Loan (what my bank sent me):

Construction cost = $250K

Estimated Appraisal of construction and land = $250K + $80K = $330K

Loan of construction (90% of appraisal) = $297K

Down payment of construction loan = $330K - $20K (equity in land) - $297K = $13K

Closing costs = $8K

My question is: If I have owned my property for less than one year once construction is finished and everything is appraised at $330K, can I use the equity in my property to pay for the closing costs (3%) and down payment (3.5%) of an FHA loan? If not, based on the numbers above, how much can I contribute towards a down payment and closing costs?

Thanks!

submitted by /u/aero1055
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source https://www.reddit.com/r/RealEstate/comments/k2j6c6/construction_loan_to_fha_loan/
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